Corrections happen often, don’t freak out…

What is a stock market correction?

A 10% drop in stocks from their peak. Since Jan. 26, the S.&P. 500 has fallen 10.16 percent. (I currently have 90% in the S.&P. 500 for one of my investment accounts…OUCH!!!)

16819

Who do corrections affect most?

Short term traders and those who heavily leveraged their account with the use of margin (an example would be a day trader).

Thankfully not me 🙂 

I’m a long-term investor so this isn’t freaking me out. I know that corrections are an inevitable part of stock ownership. And so are peaks $$$

What should you do?

That is up to you. Me? I am going to reassess my investments. Maybe change my percentages up a little. Possibly buy more stocks since they are relatively cheaper than they were a few months ago. BUT I WILL NOT BECOME JUST A CONSUMER AGAIN.

If you’re retired or going to soon, here is a great article to read from the Huffington Post.

https://www.huffingtonpost.com/entry/stock-market-crash-about-to-retire_us_5a79de20e4b0d0ef3c09b93b

And again, this is about the long term. The stock market, as measured by the S&P 500 Index, has had an average annual return of 10.31 percent from 1970 to 2016. In dollar terms, if you had invested $10,000 in the S&P 500 in 1970, by the end of 2016, your investment would have grown to $1,005,588. The worst one-year return for the stock market was in 2008, when it dropped 37 percent. 

 

Don’t freak out if you are. Do your due diligence. History will show you the stock market trend.

 

 

 

 

Advertisements

Posted by

About me…let’s see….I would say I am a TRUE Virgo. If you knew me, then you would so agree. There are quite a few things I care deeply about. Off the top of my head, I would say with much passion, my family, friends, the environment and world peace. Oh and animals. Can't forget them. I think I love animals more than most humans, lol. I believe it’s important to surround yourself with good people. Be picky with who you let in your circle. The environment, the earth does not belong to us. We are merely just visiting for a period of time. So lets no abuse it. World peace, that’s a hard one. It’s not a perfect world, but wouldn't it be wonderful if every child, women and man were safe? We can’t change the world and every single soul living on earth. But one person can make a great difference in the surroundings in which they live. Wouldn't you agree? Let’s not forget what fuels my soul, music. It speaks for me when I can’t. It expresses my feelings when I am unaware of what they are. It has a way of lifting my spirits when I am down. It has this magical power that is able to touch my heart with just lyrics alone. I wouldn't know what I would do without it. Poetry, I love poetry. In all forms...written or spoken. I think that's it :) Wait, then there is God, the source of everything. Astrology, quantum physics, Abraham Hicks, Agape...I should just end this now, LOL.

Any thoughts?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s